Keswani wrote he is taking a 100% salary cut, while assistant VPs to executive VPs will take a 66% salary cut. Assistant managers to general managers will take a 50% cut at the chain and this will apply across the entire group and its subsidiary companies.
He said the cuts will be applicable for three months: April, May and June. He further wrote that Lemon Tree will have weekly reviews and as the situation changes it will quickly take additional measures as required including partial/full withdrawals of salary cuts.
ET has seen a copy of the email. Lemon Tree confirmed the development.
“There has been an over 80% drop in occupancy levels and therefore revenue for Lemon Tree Hotels across India (infact we have had to shut down operations of many hotels in the group due to zero business). This alarming situation is now playing out across nearly all hotels worldwide. Equally worryingly, we don’t foresee any signs of recovery in India in the next few months,” Keswani wrote.
Keswani further stated that the chain needs to take immediate measures to safeguard not only the company but also pay all salaries, taxes, electricity bills, interest on its loans and other fixed expenses of the company on time.
The chain is also enforcing a complete hiring freeze till the situation normalises. Employees of the chain who wish to go on long leave without pay (from one to three months) in order to spend time with family especially after the lifting of the national lockdown on 14
th April can also opt for the same, the letter stated.